Competition in European football

Football is a market composed by many clubs in Europe. There will never be a monopolistic situation in football because the competition is getting huger every year because of the power of money. However, apart from some exceptions as Manchester City and Paris Saint Germain (club recently bought by billionaires) the leaders of the markets remains the same and are earning market shares Indeed, Football market is managed by big clubs in big countries. The biggest clubs in the world have always been English, Italian and Spanish ones until 2010. Nowadays, no more than 6 or 7 clubs might be called big clubs thanks to their sportive results: Real Madrid, Barcelona, Chelsea, Manchester United, PSG, Bayern Munich and potentially Manchester City. Why these clubs and not others very famous as Milan, Juventus, Dortmund, Marseille or Arsenal?

The answer is quite simple; there is no place for everyone in the 2010’s.

Nowadays, to earn money in order to transfer the best players, money is needed, and money comes from good results that lead to efficient marketing and communication strategies bringing even more money. Investors bringing lot of money can help this process. Thus, Real Madrid might be the best club in the world thanks to his results:

– Always first of second in Spanish League (Liga) for more than 20 years

– Always at least in semi-final in European league (Champions league) since 2010

This situation is quite the same for clubs as Barcelona, Chelsea and Bayern Munich. However, if the markets seemed to be closed, some clubs manage to penetrate itin order to be considered as a big club today Thus, Paris Saint Germain is the most striking example. Thanks to the financial effort made by the club since the Qataris’ investors arrival in 2011, Paris manage to be firstly well known in its own country by its results and then in Europe thanks to his players and European result’s.

Nevertheless, it will be harder for other clubs to reach this group of clubs at leading the football market. The gap between richest clubs and others is keeping on growing and at short-term, the football market will looks like any other market, few companies running the market.

NB

References:

http://www.lequipe.fr/Football/HIST_C1.html
http://www.capital.fr/a-la-une/actualites/le-psg-parmi-les-5-clubs-de-foot-degageant-le-plus-de-revenus-au-monde-905068

http://www.challenges.fr/sport/20140124.CHA9650/le-psg-cinquieme-club-le-plus-riche-du-monde-un-trompe-l-oeil.html

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